The Old Lady's interest in the Spain star is long-standing - they came close to signing him in 2008 toward the end of his time at Anfield - and they now view him as the ideal replacement for Andrea Pirlo, who is out of contract next summer.

Alonso's current contract at Real Madrid is also up next year and he is yet to agree a new deal with the Bernabeu club.

Former Real boss Jose Mourinho is monitoring the 32-year-old's situation and is poised to firm up his interest in January.

The Special One does not have a deep-lying playmaker at his disposal and believes Alonso would be the ideal choice for his midfield at Stamford Bridge.

Liverpool have been tipped to bring the former Real Sociedad man back to Anfield, but it is unclear if he is keen on a return to Merseyside.